GBP/USD consolidates ahead of US CPI data

FXStreet (Mumbai) - The GBP/USD pair has consolidated around 1.5150 ahead of the data in the US, which could show the core inflation ticked higher in November.

Will CPI move markets?

The data is expected to show the CPI stalled in November on a monthly basis. In annualised terms, the CPI is seen rising 0.4% from previous figure of 0.2%. The core figure is seen rising 2.0% y/y from 1.9%.

The data could move markets, if the headline and core figure print higher than estimates or significantly lower than estimates. Moreover, it could influence the expectations of the size of the liftoff tomorrow and impact the overall demand for the US dollars.

GBP/USD Technical Levels

The pair faces immediate resistance at 1.5185 (23.6% of July 2014-April 2015 plunge), ahead of the major hurdle at 1.5235 (50-DMA) – 1.5248 (50% of Apr-Jun rally). On the other hand, support is seen at 1.5113 (23.6% of 1.5819-1.4895), under which the pair could drop to 1.5027 (Nov 6 low).

EUR/SEK stages crushing decline

EUR/SEK stages crushing decline
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US CPI preview: What to expect of EUR/USD?

The EUR/USD clocked a high of 1.1060 levels before falling back to 1.10 handle as the European stock markets advanced on the back of a technical correction in the oil. The immediate focus now is on the US November CPI figure.
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